CSR REPORTING DURING THE COVID-19 PANDEMIC: A COMMON WAY TO DISCLOSE NEW SOCIAL AND ECONOMIC CHALLENGES

Abstract

The COVID-19 pandemic caused numerous socio-economic problems in addition to health consequences. Namely, during the pandemic, many companies suspended their operations, and trade was also disrupted in most industrial sectors. Furthermore, a number of existing assumptions, concepts and practices of corporate social responsibility (CSR) and sustainability were clearly questioned in this period. In this difficult context, companies are called upon to contribute to overcome the crisis with their socially responsible business and make a positive contribution to society. CSR disclosure plays an important role in informing socially responsible investors and other interested stakeholders about the challenges faced by companies in terms of CSR during the pandemic, as well as the CSR activities undertaken during this period. Keeping this in mind, the aim of the conducted research is to examine whether the COVID-19 pandemic affected the level of disclosure, as well as the change in CSR disclosure priorities among companies operating on two Southeast European frontier markets – Republic of Serbia and North Macedonia, through a comparative review of CSR reporting practices, in accordance with the GRI framework. The research includes 37 companies included in the structure of the BELEXline and MBI10 indices in the period before (2014-2019) and during the COVID-19 pandemic (2020-2021). Judging from the Economic and Social Disclosure Index structure and value trends, the findings indicate that: 1) the COVID-19 pandemic did not negatively affect the level of CSR disclosure, 2) social issues of sustainability were given priority in reporting, especially issues related to finding an alternative to layoffs, worker protection and safety at work. In this way, companies proactively interacted with stakeholders by disclosing additional CSR information focused on the existing social and economic challenges and their sustainability achievements during the pandemic period.